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Finance Ministry Announces LTC Voucher Scheme, Expected To Boost Demand By Rs 28,000 Crore
Swarajya Staff
Oct 12, 2020, 01:01 PM | Updated 01:01 PM IST
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Finance Minister Nirmala Sitharaman in a press conference on Monday (12 October) announced a Leave Travel Concession (LTC) voucher scheme to encourage spending by government employees.
Sitharaman said that this proposal is designed to boost demand for services offered by the less-fortunate sections of the society.
Under this LTC voucher scheme the beneficiaries opting for the same will be required to buy goods and services worth three times the fare encashment and equivalent to the leave encashment.
The transactions will also have to be made digitally and goods entailing a GST of 12 per cent or more can be brought from GST registered vendors. These purchases need to be made by 31 March 2021.
This scheme is expected to cost around Rs 5,675 crore for central employees and Rs 1,900 crore for Public Sector Unit and Public Sector Bank employees. Tax concession will also be provided to states and private sector for employees entitled to LTC.
The Finance Ministry as a expects to generate demand to the tune of Rs 28,000 crore out of which the central demand infusion is expected to be Rs 19,000 crore.
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